If you’re a Massachusetts resident interested in purchasing or refinancing a home but you’re not sure if you have the income to do so, MassHousing may be your answer. MassHousing is a non-profit organization offering many special programs to low-income Massachusetts residents. The organization offers three primary programs to assist people looking to buy or refinance a home.
Program #1: MassHousing Refinance Loans
MassHousing offers refinance loans that include a number of benefits, such as 30-year terms to lower your monthly mortgage payment, fixed interest rates so you’ll never have to worry about your payment changing, and a special type of mortgage insurance called MI Plus. MI Plus comes at no additional cost and in addition to regular mortgage insurance, it will cover your monthly payments, including interest, for up to six months should you ever be unemployed. This feature may be used for up to six months at any given time during the first 10 years of your loan and it provides an extra layer of protection and stability for both you and your family.
MassHousing refinance loans may be used for condominiums as well as 1 to 4 family homes. As with any lower-income program, borrowers are subject to income limits to qualify for this type of loan, and those limits depend on the county in which you live in.
Program #2: MassHousing Purchase Loans
For first-time homebuyers, this may be the loan you’ve been looking for. With a purchase loan from MassHousing you’ll get an a fixed, affordable interest rate, 30-year repayment term, mortgage payment insurance plus protection that covers you for up to six months if you lose your job, and there are no hidden fees or surprises. These loans are serviced directly through MassHousing and offer the option of paying as little as a 3% down payment. MassHousing purchase loans include very flexible underwriting and income limits too, meaning that more families will likely qualify.
Program #3: MassHousing Mortgage with No MI (Monthly Insurance)
For those with good credit, MassHousing offers mortgages with no monthly insurance requirement. These loans include affordable fixed interest rates, 30-year repayment terms, and no hidden fees or other surprises (unlike their other loan types). This type of mortgage also allows buyers to put down as little as a 3% down payment required for single family homes and a 5% down payment for a 2-4 family home. In addition to having good credit, intending to purchase a 1-4 family home, and meeting income limits; you must also complete a homebuyer education course to qualify for this type of loan.
While the signs that the economy is starting to improve for some, many people are still struggling. Fortunately, if you’re lucky enough to live in Massachusetts, MassHousing might be the housing hope you need.
Local Rate 411 Matches You With The Right Lender!